Does anyone know why DE and CAT moved so much this year?

Discussion in 'Economics' started by RGLD, May 29, 2021.

  1. RGLD


    Is there a farming and construction boom going on behind the scenes? I don't take the "economy is opening back up" reason since a lot of stocks didn't roar back as hard as these 2 did.

    Some stocks like CMG are getting destroyed when they are projecting great earnings next quarter and for the year. Only thing I can think of is people are speculating there is going to be more demand for their equipment in 2022? While fast food is on the decline...
    murray t turtle likes this.
  2. panzerman


    They moved because more money bought at the ask than sold at the bid over the course of the year. Trying to always find cause and effect in financial markets is surely a path to madness.

    There is one way and one way only to make the price of a financial asset go up, and that is to buy it. There is every reason under the sun why someone makes a decision to buy or sell. Trying to suss out these reasons is why you have financial commentators, and fund managers trying to induce you to invest.
  3. traider


    DE earnings have become more stable due to their services portion growing. Investors are rewarding them for it.
  4. RGLD


    That doesn't really explain CAT going up as well. If you step back and look at the bigger picture, I think there's a lot of investment in construction right now. I only know of DE and CAT, but I'm sure a lot of companies that rent out heavy equipment is having a good year. Has very little to do with earnings and "services" and more to do with industry.
  5. themickey


    Possibly this....
    Cat® Autonomous Mining Trucks Haul One Billion Tonnes
    For Worldwide Release: November 2018, Release Number: 582PR18

    Cat® mining trucks working within MineStar™ Command for hauling recently reached a milestone of one billion tonnes hauled. Caterpillar deployed the first six commercial autonomous trucks in 2013, and the fleet has now grown to more than 150 with six different mining companies operating Command for hauling in iron ore, copper and oil sands.

    “Command for hauling has proven its value to mining customers,” said Sean McGinnis, product manager, Caterpillar Mining Technology. “That value is reflected in the rate at which the Cat autonomous fleet achieved this milestone. The fleet is growing quickly and production continues to climb as mining companies benefit from greater truck productivity, increased truck utilization, consistent truck operation and reduced costs.

    “In the process of hauling one billion tonnes, the autonomous trucks traveled nearly 35 million kilometers,” McGinnis said. “No lost time injuries have been attributed to Cat autonomous haulage. Command for hauling has demonstrated how it enhances safety by eliminating truck operating errors and by reducing the number of people working in the active mining area.”

    Initial development of Cat autonomous mining trucks began more than 20 years ago. “In 1996 Caterpillar debuted the first autonomous mining truck at MINExpo,” said Michael Murphy, chief engineer of Cat MineStar. “Caterpillar was an early adopter of GPS guidance technology, and we had success with it in a number of applications. At that time, Caterpillar focused on developing the building blocks for automation. These technologies are now the core of MineStar capabilities, which assist onboard operators and enable teleremote, semi-autonomous and autonomous machine operation.”

    Currently, Cat autonomous trucks are operating in Australia, South America and North America. A fleet of 70 Cat autonomous trucks in Australia has achieved productivity increases of 30 percent at significantly reduced costs. Driven by additional process improvements, greater productivity gains are possible.
    Last edited: May 30, 2021
    murray t turtle likes this.
  6. %%
    Industrials, guns /ammo = strong sectors;
    MCD=strong uptrend also\not a stock sector tip
  7. RGLD


    I don't think it's related to just DE and CAT alone. There seems to be a bull market in the construction sector even though I didn't hear much news about it. Home Depot on the receiving end of that had a big run up too. Also SPG ( one of my favorites had one hell of a run too )

    I figure it has something to do with real estate and construction. Something is going on behind the scenes and as usual, by the time the media starts covering this, the last leg of the bull market will be over.
    murray t turtle likes this.
  8. RGLD


    Ok I know now Blackrock has been buying homes like crazy and home prices have been raising rapidly for the entire year.

    I don't know WHY blackrock is bidding up home prices all of a sudden...

    I'm not a big fan of financial commentary but he is using news articles and charts...

    High home prices mean more business for companies that rent out equipment and collection real estate. I think REITs are doing well now too. Bull market in real estate. Another indicator that a company's balance sheet means very little, we're in a sector based economy now.
  9. Q.E.D.


    Inflation, which is best defined as increase in money supply, affects the higher order goods first, and to greater extent. Thus, capital assets such as stocks & housing increase before the price of consumer goods. And the higher order cap assets, such as CAT, DE, copper, etc., go up early.